What would you say is the state of the Greek real estate market at the moment?

The unstable economic situation in Greece made it possible for many participants of the investment market to carry out their financial games. First of all, the economic situation has given many opportunities for banks, developers, investment funds.

Many countries drew attention to Greece. Large foreign companies have started to buy out large significant properties, such as international airports, ports (Athens and Thessaloniki), railway industry.

In the same way, there is a buying up of secondary real estate, both residential and commercial. For example, by the American company Black Rock.

Which industry is the most promising?

Over the past 5 years there has been a steady interest in the hotel industry. Hotel business in major European cities has reached its peak, there is no opportunities for development. But this can’t be said about Greece, in particular, about the major cities of Athens and Thessaloniki. The main advantages of investing in the hotel industry in Greece are:

– low cost, the prices start from 500 700 euros per sq.m.

– government financing programs

– high turnover, averagely, hotels in Thessaloniki and Athens reach 80-95% of occupancy all year round

– favorable conditions for management companies

It should be noted that nowadays any residential property in Greece can be operated as a tourist real estate. Over the past year, the portals AIRBNB and BOOKING have noted a high interest for holidays in private apartments and houses. This points to the fact that even apartments that were originally considered only as a long-term lease, can be rented for short-term rent and bring a good and stable income.

Unlike major European cities, Greek cities attract their tourists, firstly, by economical prices, secondly, by rich cultural and religious program, and thirdly, throughout the year, by their mild climate. That is why hotel occupancy during the year in the cities of Athens and Thessaloniki does not fall below 75%.

Which are the major development projects in Greece right now?

• The largest port in Greece – Piraeus (3rd in Europe) – is under control of Chinese company for 368.5 million dollars. The Greek port, located near Athens, is planned to be turned into a major international transit hub for transshipment of goods from Asia to Europe. This purchase will be an excellent addition to the deal on the construction of the Chinese port in the town of Cherchell (Algeria), which should become the largest sea shipping center in the Mediterranean.

• Greek regional airports were bought by the German consortium FRAPORT. Regional airports included in the list of those that are transferred to investors are located on such islands as Corfu, Kos, Samos, Rhodes, Santorini, as well as in Thessaloniki, the second most important airport in Greece. The total investment amounts to 1.4 billion euros. In addition, the Greek authorities expect to create at the expense of investments more than 15 thousand workplaces. Fraport AG is a German company that manages the international airport Frankfurt with a passenger flow of 59.6 million people. It also wholly or partially owns the companies that manage many German and international airports, including Frankfurt-Hahn, Hanover and Saarbrücken (Germany), Lima (Peru), Antalya International Airport (Turkey), St. Petersburg International Airport (Pulkovo) and terminal at Brisbane Airport (Australia).

• The Hellenic Republic Asset Development Fund and Lamda Development company signed a Memorandum of Understanding on a new agreement of purchase 100% of the shares of the former Ellinikon International Airport. The development company will receive the territory of the airport located within Athens, near the coast, in exchange for investments of 7 billion euros. Ellinikon was closed after the construction of the Athens International Airport Εleftherios Venizelos for the 2004 Olympic Games. In the coming years, Attica will implement the largest urban redevelopment project, the largest city park in Europe has been created. But first of all, the implementation of such a large project creates the prospects for thousands of workplaces. Large construction companies that will participate in the construction: Fosun, Eagles Hills Abu Dhabi, Latsis Group.

• Over 0.6 billion euros were invested by Russians in the hotel business over the past 5 years. Investments are directed to purchase and reconstruction of hotel complexes. 300 million euros was invested by Russians in the hotels of the region of Chalkidiki.

• The program Golden Visa from the beginning of its operation has brought to the state treasury more than 0.6 billion euros of investment in Greek real estate. According to statistics for August 2017, 1867 golden visas were issued, 359 of which were issued to Russians. We remind you that in order to obtain residence permit in Greece, you need to invest 250.000 euros in Greek real estate. Nowadays, this is the lowest «threshold» in Europe.

• In 2015, a deal was concluded on the sale of the historic hotel complex Asteras Vouliagmeni: the Arab-Turkish holding Jermyn Street Real Estate acquired it for 400 million euros. The world leader in the hotel industry Four Seasons Hotels and Resorts and the company Astir Palace Vouliagmeni S.A. proudly announced joint plans to open the first Four Seasons resort in Greece. Four Seasons Astir Palace Hotel Athens debuts in the spring of 2018, after a thorough renovation of the Astir Palace hotel, which will be occupied by the first Greek resort Four Seasons. More than 100 million euros have been invested in the creation of the Four Seasons Resort Astir Palace Hotel Athens. The reconstruction project will include a complete renovation of the resort, the modernization of the Astir Marina yacht club, the improvement of Astir Beach, the construction of 13 luxury villas and the design of the Peninsula Park.

• The largest investments, more than 230 million euros, from Turkish companies in the harbor of Greece (marina Flisvos – marina Zea, marina Gouvies Corfu, marina Lefkas Levkada).

Mr Konstantinos Petridis is the CEO of Grekodom Development, a company with 12 years of experience in the Greek real estate market